Saturday, 13 September 2025
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
Gold Up As Dollar Weakens; Traders Brace For Fed Rate Decision
Monday, 5 May 2025 12:22 WIB | GOLD |GOLDEMAS

Gold prices rose on Monday, supported by a weaker dollar, as investors awaited further details on U.S.-China trade relations, along with a Federal Reserve policy meeting later this week.

Spot gold was up 0.5% at $3,256.85 an ounce, by 0416 GMT. U.S. gold futures were up 0.7% at $3,265.10.

The dollar (.DXY), opens in a new tab, fell 0.3% against a basket of currencies, making gold more attractive to holders of other currencies.

"The U.S. dollar appears to be weakening ahead of this week's Fed meeting, which could allow gold to gain a bit," said Tim Waterer, chief market analyst at KCM Trade. "We may see gold continue to operate in the $3,200-$3,350 range ahead of the Fed meeting. However, any fresh headlines on the trade deal could cause volatility to increase once again." Market focus will be on the US central bank's policy decision and speeches by several Fed officials due this week for insight into the future trajectory of monetary policy.

Traders now expect an 80 basis point interest rate cut this year starting in July, following a report by the US Labor Department on Friday that showed stronger-than-expected job gains in April.

Non-yielding gold acts as a hedge against global uncertainty and inflation and tends to thrive in a low-interest rate environment.

US President Donald Trump said he will not remove Jerome Powell as Fed Chairman before his term ends in May 2026, while reiterating his call for the Fed to cut interest rates. Trump said on Sunday the US was meeting with many countries, including China, to discuss a trade deal, and his top priority with China was to secure a fair trade deal.

Chinese markets are closed for the Labor Day holiday from May 1-5 and will reopen on Tuesday, May 6. Spot silver rose 0.5% to $32.14 an ounce, platinum fell 0.2% to $957.77, and palladium rose 0.2% to $955.28. (Newsmaker23)

Source: Reuters

RELATED NEWS
Gold rises as weak US sentiment and jobs data fuel rate cut expectations...
Saturday, 13 September 2025 02:29 WIB

Gold prices rise over 0.44% during Friday's North American session as weaker than expected jobs market data increased the chances that the Federal Reserve (Fed) will cut interest rates next week. At t...

Gold Bulls Not Ready To Give Up Yet As Fed Rate Cut Bets Keep USD Depressed ...
Friday, 12 September 2025 16:02 WIB

Gold (XAU/USD) trims a part of its intraday gains, though it sticks to positive bias through the first half of the European session on Friday and remains close to the record high touched earlier this ...

Gold set for fourth weekly gain on soft US data, Fed rate outlook...
Friday, 12 September 2025 13:17 WIB

Gold prices rose on Friday and were set for a fourth consecutive weekly gain, as mounting concerns over a weakening U.S. labour market eclipsed inflation worries ahead of a widely expected Federal Res...

Gold Price Forecast: XAU/USD edges lower below $3,650 on profit-taking ...
Friday, 12 September 2025 07:42 WIB

The Gold price (XAU/USD) edges lower to around $3,630 during the early Asian session on Friday. The precious metal retreats from a record high on some profit-taking. Nonetheless, the rising bets of th...

Gold slips as traders book profits despite increasing Fed dovish bets...
Friday, 12 September 2025 02:00 WIB

Gold price trimmed some of its earlier losses on Thursday, yet it remains negative in the day, down over 0.14% as the latest print of consumer inflation was aligned with estimates. Nevertheless, jobs ...

LATEST NEWS
EUR/USD steadies as Fed rate cut bets firm amidst US labor market concerns

EUR/USD remains steady during the North American session on Friday, poised to end the week with modest gains of over 0.18% as traders brace for the next week's monetary policy decision by the Federal Reserve (Fed). At the time of writing, the pair...

Bessent met with BlackRock's Rieder as search for next Fed chair continues

U.S. Treasury Secretary Scott Bessent met with BlackRock Inc executive Rick Rieder in New York on Friday, as the Trump administration continued its search for a new chair for the Federal Reserve, a source familiar with the matter said. Bessent has...

Oil gains weighed down by US demand worries

Oil prices rose on Friday after a Ukrainian drone attack suspended loadings from the largest port in western Russia, but gains were capped by concerns about U.S. demand. Brent crude futures settled at $66.99 a barrel, up 62 cents, or 0.93%. U.S....

POPULAR NEWS
IMF says Fed has scope to lower interest rates
Friday, 12 September 2025 01:38 WIB

The International Monetary Fund on Thursday said the Federal Reserve has scope to lower interest rates because of the weakening U.S. labor market,...

Fed seen on course for rate cuts after PPI data
Thursday, 11 September 2025 01:30 WIB

The Federal Reserve is likely to start a series of interest-rate cuts next week and keep going through the end of the year, traders bet on Wednesday...

Breaking News: US CPI Inflation Rises to 2.9% in August, Matching Forecasts
Thursday, 11 September 2025 19:44 WIB

Annual inflation in the United States (US), as measured by changes in the Consumer Price Index (CPI), rose to 2.9% in August from 2.7% in July, the...

S&P 500 notches record-high close as Oracle soars on AI optimism
Thursday, 11 September 2025 03:24 WIB

The S&P 500 notched a second straight record-high close on Wednesday, as Oracle surged and cooler-than-expected inflation data supported...